City of Oakwood, Ohio

The Internal Service Funds account for the financing of goods or services provided by one department to other departments in the City. These goods and services include vehicle maintenance and payment of self‐insurance vision program deductibles.

The Custodial Fiduciary Funds are used to account for the collection and disbursement of monies by the City on behalf of other individuals, organizations or other governmental entities. The following are the City’s custodial fiduciary funds. The Martin Luther King Jr. Community Recognition Fund accounts for funds related to Dr. Martin Luther King Jr. holiday celebration events. The Fire Insurance Trust Fund accounts for funds received from a resident’s fire insurance policy to insure repairs are made to any structure damaged by fire. The funds are returned to the insured once repairs are completed. The Municipal Court Fund accounts for activity relating to the Oakwood Municipal Court. The Contractor’s Permits Fund accounts for monies placed on deposit with the City during the current calendar year and subsequently applied, at the direction of the contractor, to payment of permit fee obligations during the same current calendar year. Monies remaining in the account at the end of the year are transferred to the City’s General Fund.

Basis of Accounting

The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured and the basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

The government‐wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met.

Custodial fiduciary fund statements are reported using the economic resources measurement focus and the accrual basis of accounting. A liability to the beneficiaries of a fiduciary activity is recognized in a fiduciary fund when an event has occurred that compels the government to disburse fiduciary resources. Events that compel a government to disburse fiduciary resources occur when a demand for the resources has been made or when no further action, approval, or condition is required to be taken or met by the beneficiary to release the assets.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough after to pay liabilities of the current period. For this purpose, the City considers revenues available if they are collected within 30 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, claims and judgments, are recorded only when payment is due.

Property taxes, income taxes and investment income associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal